FraudTalk is a blog focused on the review and discussion of recent significant cases of fraud, corruption and employee misconduct - particularly major embezzlement cases in the US. Fraud Talk is published by Chris Marquet, Chairman & CEO of Marquet International Ltd., an international investigations, litigation support and due diligence firm.

Sunday, January 11, 2009

Illinois Man Sentenced In $1.5 Million Scheme To Defraud His Employer

Michael A. Pallagi, 58, of Maryville, Illinois and the former project manager at Steris Corporation, pleaded guilty to defrauding the company of some $1.5 million over an eight year period. Pallagi set up to phony companies, Performance Packaging, and Performance Concepts, which billed Steris fraudulently. He plead guilty in October to one felony count of mail fraud and was sentenced to 46 months in prison, plus restitution. Under the plea agreement, he as agreed to give up his home in Maryville, which had improvements from some of the ill-gotten gains, according to prosecutors. Pallagi admitted he spent the money on himself, supporting a lavish lifestyle, buying luxury cars and making home improvements.

About the Author - Chris Marquet

Chris Marquet is President, Investigative Services with SunBlock Systems, an investigations, litigation support, computer forensics & cyber security firm. Chris has over 34 years of professional experience in industry with Marquet International and prior stints with Kroll Associates, Citigate Global Intelligence and Decision Strategies/Vance International.
Chris is the author of many articles and white papers, including the annual Marquet Report on Embezzlement as well as the Marquet Report on Ponzi Schemes. He has lectured extensively on subjects relating to employee misconduct; due diligence; business intelligence, internal investigations, fraud, employee integrity, workplace violence, kidnapping, terrorism, crisis management and travel security.
Chris is a Certified Board Advisor and Board Member for the Center for Strategic Business Integrity. He received an A.B. degree from Dartmouth College in 1983, with a triple major in Physics, Economics, and Philosophy.
He can be reached at cmarquet@sunblocksystems.com